The price of Tesla shares has more than doubled since October last year, when the company reported a rare quarterly profit.
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They rose 4 per cent on Wednesday, putting its market valuation second only to Toyota, the Japanese car maker which is worth more than $230bn.
Tesla said this month it delivered more than 367,500 cars last year, an increase of 50 per cent from 2018. Elon Musk’s company recently opened a factory in Shanghai as it aims to target more of the Chinese market.
However, Tesla sales remain small compared with its leading competitors.
Volkswagen sold almost 11 million vehicles last year, while Toyota sold more than 9 million in the first 11 months of 2019.
Tesla has never made an annual profit and faces investigation after complaints about battery fires and unexpected acceleration in its vehicles. The company is due to report its latest quarterly results to investors this month.